1. Helping You Plan For Your Retirement Retirement Plan for the Employees of the Christian Brothers University

2. Concept Retirement Planning Concepts S ERPERP SavingsSavings

3. Employee Retirement Plan (defined benefit plan) Helping You Plan For Your Retirement

4. Eligibility Must work a minimum of 20 hours per week.

5. Vesting (defined benefit plan) Must complete 4 years and 9 months of continuous service to become vested. Termination of employment prior to achieving vesting status results in no benefit.

6. Future Service Benefit Calculate your benefits Assume an average salary of $40,000 over 20 years of service, with a final pay of $60,000 $21,120 Average Salary:$40,000 Years of Service: 20 Benefit Formula: 2.64% $21,120 * * Per year in retirement - 35% of final pay

8. Disability Supplement An employee who becomes totally disabled and qualifies for social security disability will continue to accrue a benefit until the earlier of normal retirement age or the date they no longer qualify for disability.

9. Pre-Retirement Death Benefit Death Benefits For Active Employees: If a married and vested active employee dies before retirement, the surviving spouse will receive a 50% pension for life starting immediately (minimum age 40). If a single and vested active employee dies before retirement, the designated beneficiary will receive a lump sum payment of up to $10,000.

10. Retirement Ages Retirement Age: Early retirement at reduced benefits – Age 55 Normal retirement:   Participants before July 1, 2012 – Age 65   Participants on or after July 1, 2012 – Normal Retirement Age under Social Security

11. Golden Rule of 90 (only applicable to participants prior to July 1, 2012) Add your age + the number of years worked When it totals 90 you can retire with full benefits after age 55! Age + Years Worked = 90 Golden Rule of 90

12. Forms of Benefit at Retirement Normal Form of Payment: Single Employee: Life only (monthly benefit for life) Married Employee: Joint and 50% to survivor annuity

13. Forms of Benefit at Retirement Optional Forms of Payment: Single Employee: 50% or 100% of reduced benefit to surviving joint pensioner. Election must be made prior to actual retirement date. Married Employee: Life only (monthly benefit for life), or 50% or 100% of reduced benefit to surviving spouse. Election must be made prior to actual retirement date. All Employees: 10 Year Certain & Life, a reduced benefit is guaranteed payable for 120 months. Election must be made prior to actual retirement date.

14. Secure Retirement – PRICELESS!

15. © 2012 Christian Brothers Services, Romeoville, IL. All Rights Reserved. No part of this presentation may be reproduced, stored in a retrieval system, or transmitted by any means without the written permission of Christian Brothers Services. © 2012 Christian Brothers Services, Romeoville, IL. All Rights Reserved. No part of this presentation may be reproduced, stored in a retrieval system, or transmitted by any means without the written permission of Christian Brothers Services. We appreciate the opportunity to serve Christian Brothers University CHRISTIAN BROTHERS RETIREMENT SERVICES